Second Reading: NTR Logistics Lease 1702 Port of Tacoma Rd. - - PowerPoint PPT Presentation

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Item No.: 5B Date of Meeting: May 9, 2019 Second Reading: NTR Logistics Lease 1702 Port of Tacoma Rd. Presenter: Annika Bjorkman Real Estate Property Manager Port of Tacoma Action Request Authorization for the Chief Executive Officer or

SLIDE 1

Second Reading: NTR Logistics Lease – 1702 Port of Tacoma Rd.

Item No.: 5B Date of Meeting: May 9, 2019

Presenter: Annika Bjorkman Real Estate Property Manager Port of Tacoma

SLIDE 2

Authorization for the Chief Executive Officer or his designee to enter into a three-year lease with NTR Logistics, LLC for yard space located at 1702 Port of Tacoma Road, Tacoma, WA.

Action Request

SLIDE 3

NTR Logistics – Lease Location

SLIDE 4

NTR Logistics – Lease Premises

SLIDE 5

NTR Logistics has operated in the Port of Tacoma

tideflats since 2012.

NTR transloads and hauls tower flanges, hubs, and

bed frames for windmills, which are imported mostly through WUT and sometimes Husky Terminal.

NTR has leased this site on a month-to-month lease

since November 2018.

NTR now wishes to execute a 3-year lease with two 1-

year mutually approved extensions.

Background

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Use: Transloading and truck/trailer parking.
Premises: 2 acres of yard space.
Lease Term: Three (3) years with two, one-year

mutually approved options to extend.

Rent: $12,000/mo. ($144,000/yr.)
$0.14 per square foot per month.
Rent Commencement Date: June 1, 2019.
Rent Escalation: Annual escalation based on CPI-U

Seattle-Tacoma-Bellevue.

Utility Expenses: Lessee responsibility.

NTR Logistics – Lease Terms

SLIDE 7

Security Deposit: $162,490 (one year’s rent +

leasehold tax)

Insurance Requirements: $2 Million General Liability.
Maintenance and repair responsibilities are Lessee’s.

NTR Logistics – Lease Terms Cont’d

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This lease retains 5 jobs in Tacoma.
Continued utilization of Port property.
Approximately 30 flat-racks are shipped through the

Port of Tacoma each month.

This lease supports the Port’s core business of moving

international cargo.

The monthly rent of $12,000 or $144,000 annually is

an increase over the budgeted 2019 operating revenue.

This is an increase over prior year’s actuals which only

included two months of rent at this property.

NTR – Lease Benefits

SLIDE 9

Action Requested

Authorization for the Chief Executive Officer or his designee to enter into a three-year lease with NTR Logistics, LLC for yard space 1702 Port of Tacoma Road, Tacoma, WA.